Czech Republic house prices surge in 2015

Czech house prices surged in 2015, according to new figures.

The data from the HB Index shows that all segments of the market saw proeprty values increase last year, including apartments, houses and land.

Overall prices jumped 6.3 per cent in 2015, with Hradec Kralove, Karlovy Vary, Usti and South Moravia leading the increase.

“The rise in prices of residential units in the last quarter of last year increased slightly,” commments Petr Nemecek, CEO of Hypotecni banka. “Compared to the previous quarter, it was dragged down especially by the regional cities.”

Older brick apartments saw prices rise more than new build properties, with the greatest interest from buyers focusing on small flats in Prague and regional cities. The capital saw prices increase by between 6 and 10 per cent annually.

“In Prague, the share of purchases in a new dwelling which were for investment was 25 per cent,” adds Nemecek. “2015 was a record for developers. Over 7,000 apartments were sold in Prague.”

Low prices boost foreign investment in Czech property

24th February 2016

Low prices are boosting foreign investment in Czech property.

Hotspots such as Karlovy Vary, the Czech Republic’s most famous spa town, are the primary targets for buyers.

The town’s economy is driven by tourism, thanks to its large network of natural springs and therepeutic spas built around them. The relatively low prices are igniting interest from overseas, reports Tranio, with holiday homes and accommodation, plus rental properties for tourists leading demand.

“Property here is still undervalued and less expensive than in neighbouring countries such as Austria and Germany. However, real estate agents now report that demand is currently higher from Ukrainian buyers than Russians and the Czechs are also returning now that prices have fallen,” reads Tranio’s latest report.

“At the same time, Chinese interest in large Czech real estate projects has been growing.”

Research is important to determine that investors are getting the best bargain for their buck: pricing in Karlovy Vary is “volatile”, adds the broker. “Owners have not yet adapted to the new pricing situation and it’s possible to find two identical apartments in the same building for very different prices.”